The Dangers of Inflation and How to Protect Yourself

This is the biggest mistake investors make before getting Financial Advice. Let's fix this today.

Financial Planning

Inflation can be hard to get your head around, but you need to because it's a hugely powerful force. Although inflation may seem like a small effect from year to year, it compounds over time, resulting in massive losses of purchasing power.

But it gets worse; As we get older, we start to rely on different goods and services, like health care, and the prices of these goods inflate at a much higher rate than 2%.

The solution is simple: only hold enough cash as is absolutely necessary. The rest needs to be invested.

But most people don't fully understand inflation, and even if they do, they don't know where they can invest with confidence.

Resources to check out:

Bank of England Price Changes

US Money Supply

Risk Warnings & Disclaimers

Capital at risk. Past performance is used as a guide only. It is no guarantee of future returns. Any examples used in the video are for illustrative purposes only and you may get less back than the figures shown. Different funds and asset classes carry varying levels of risk depending on the geographical region and industry sector. You should make yourself aware of these specific risks prior to investing. This video does not constitute personal advice. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. We do not provide tax advice. We do not take any responsibility for third party websites and content we may link to from this video. Issued on behalf of Nova. Nova is a trading name of Nova Wealth Ltd, which is authorised and regulated by the Financial Conduct Authority (FRN: 778951) and is a limited company registered in England & Wales (10739796).

James Shack™ property of James Shackell
Copyright © James Shackell 2021. All rights reserved.

00:00 Intro
01:14 What is Inflation
04:50 Infinite Money (Money Printing)
11:00 Why inflation is good
13:45 How inflation affects you & how to protect yourself

[JamesShack]

Please let me know your questions below, there’s a lot to unpack in this one!

[belgianboy]

10/10 - I've always wondered why governments desired a small amount of inflation and you've answered it in a simple, concise way! Appreciate all the videos

[thescand]

James mate, we need a house tour more than anything. The backdrops to these videos are so lovely, who designed your place? Kudos to them! 👏🏼 (10/10.)

[tws]

10! Best finance YouTube channel I have come across. It’s great that this is UK focused!

[julianfp]

A bit late here, I only recently discovered your channel and it is excellent, but I'll rate this one 8 out of 10. I loved the explanation of inflation, particularly the money supply aspect of it. My reason for knocking off a couple of points though is that I felt slightly short changed on the second how-to-protect-yourself part that I think could have benefitted from another 3 or 4 minutes of time devoted to it because after all that earlier explanation the punch line was not much more than "cash bad, equities good". I was left with a few questions such as what about index linked gilts? Having shown the potentially catastrophic effects on inflation on bond returns why are they still discussed so much as a component of a private investor's portfolio? Is Bitcoin really an inflation hedge given its crazy volatility? Maybe some examples of how equities fared during periods of really high inflation e.g. the 1970s. Essentially I would have liked a bit more meat and broader discussion in that final "what do I do about it?" section even if it added 5 minutes to the length of the video, or maybe you could have gone into a lot more depth and split the video into two parts which I think would have worked really well.

[RandellJohn]

10/10 James, I really liked your simplified explanation of the relationship between quantitive easing and GDP and it's possible effect on inflation. Great videos, I'm learning so much from you.

[herbrottner]

9.9 of 10. Clear and unbiased communication without esoteric jargon or overly nuanced phraseology that is often part of economic and investment related video/material. Well done!

[zippyatrainbow]

9.5 as closed to a ten as I will probably ever give! Thanks!

[richardmoore]

9.5/10 great video some more content for those 1 or 2 years away from retirement, drawdown v take lump sum, managing emergency fund etc but seriously good content well explained

[davidlowton]

James, I’m so glad YouTube recommended your channel. Your content and delivery is second to none. Thanks for the details and layman’s terms you deliver.
It’s a 10 from Len!

[Trifusion]

9/10 - This is perhaps not a comment on this video but on your whole channel, all the videos feel a little same-y.

On this video I think it’s one of your best, as always your simple graphs are very effective and condense complex ideas effectively. Your voice is easy to listen to and that smooth background music makes me feel somehow comfortable when you get into the swing of it.

Interesting to hear you touch on mortgages and also on asset classes other than ETFs. I would love to hear more from you on both of those.

[ritajames]

10/10 James! Excellent use of simple clear examples with graphs that show how over the years, stocks have risen and market crashes have affected stock prices, how inflation works and how to plan by taking more rather than fewer risks. Judicious risk taking can be more profitable than most other choices of investment and certainly superior to leaving money in the bank.

[PeterCostello-vnpg]

10/10 from me James. I find you clear and very articulate. You pitch at the right level for me anyway. I am just tuning in to investing and fit that 50 something category. Found your comment about “the investment2 does not stop when you retire” eye-opening. Keep up the channel, lots of us are really helped by it.

[RichardOzanne]

11/10. This channel has taught me so much that I had no idea about previously. If only Youtube had been around 40 years ago and guys like you had been posting stuff like this then! I could have retired a long time ago.

[russguy]

10/10 from me! How could it not be?! James, you give so much valuable information and explain it in layman's terms that the majority of people can then understand. Fear is born from ignorance but once you take the time to learn about a subject matter and acquire the tools to support/protect yourself by following certain rules, then there should no longer be fear but enlightenment! Thank you!
Dare I say it, the same principles apply to educating yourself about viruses and pandemics too!

[l.patrick]

Straight talk; all plain & simple. After watching 3 videos, no brainer...subscribed.

I'm here for the education, James. Thank you!

[samrobertstheratcliff]

10 for me, mainly because I’ve tried to explain all this to my missus for years and got nowhere, but she seems to be listening to you!

[ravpatel]

10/10 you smashed it. I've seen a few of your videos now, and i would say your break down, method and summary comes across perfectly. keep it up!

[PallabGhosh]

6. You have improved a lot since this video, James - but here you went around the houses making something that’s straightforward more complicated

[spartacusptolemaida]

that's def a 10/10 mate! been researching investing tips for a while now and your content is gold! you've no idea how much I appreciate your tips and advices, and the best thing? they're free!